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S e C u RITY SYST e MS ne WS June 2018 www.securitysystemsnews.com
Monitoring 23
app—is actually going to be
declining starting next year and
the connected systems are going
to be growing upwards of 18 to
25 percent annually."
Kozak continued, "So, it's not
necessarily that the market's
slowing, it's that the market is
shifting." Dealers who aren't
getting more involved with video
and other value-added services
will start to decline in a few
years, "especially as you see
more MSOs entering the space
and more DIY-type systems,"
said Kozak.
The report looked at alarm
monitoring for small- to medi-
um-sized businesses and large
enterprises as well as the resi-
dential space.
MSOs and professionally moni-
tored DIY systems will collec-
tively make up about 20 percent
of the residential alarm monitor-
ing market by 2022, according
to IHS Markit; these portions of
the market made up about 9.5
percent in 2017.
MSOs will rise to cover about
14 percent by 2022, Kozak said.
Comcast is the more predomi-
nant MSO at this point in the U.S.
market, Kozak said, as the pro-
vider accounts for 78 percent of
MSO monitored accounts in the
U.S. in 2017. "There aren't that
many who have a lot of penetra-
tion at the moment but I think
that as these MSOs expand out
their ecosystem, I think they'll be
in a much better position to per-
haps converge or take customers,
especially because … they own
all of the aspects of entertain-
ment and media," he said.
"In order to overcome that,
these dealers and other tradi-
tional security service providers
will need to innovate around
video more and partnerships,"
said Kozak.
Comcast recently purchased
cloud-based automation provider
Stringify in September 2018 and
a business unit of Icontrol—the
Converge platform—around
March 2017, Kozak noted. "So,
they're in a very good position
to integrate their media content,
their voice remote, all of these
other features and functions that
most traditional security service
providers don't have."
Kozak advised that security
service providers should be ready
for a wave of consumers—like
millennials—that are looking for
offerings outside of traditional
systems, with devices such as
air quality sensors and lighting,
at a certain price point.
Growth, changes coming to the monitoring market to 2022
DIY installed systems that are
professionally monitored will
remain a "relatively small" por-
tion of the market, increasing
from a 3 percent share of the
market to about 6 percent over
the next five years, said Kozak.
Though, DIY installed and self-
monitored systems are also a
factor, he added. "I don't think
that the professional security
market is going to be impacted,
in the short term, by the DIY
market."
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make sure that end users
are aware of verification
technologies, Robinson
said, an effort which ulti-
m a t e l y n e e d s a s t ro n g
dealer base behind. "As
we begin to go out and
promote the message of
video verification to the
end users, it's going to
be critical that we have a
robust dealer network in
place to support the end
user demand."
SSN
Continued from page 22
I-V I ew
"SMB connected accounts will continue to ramp up
and will see double-digit growth starting in 2022."
—Blake Kozak, IHS Markit
Continued from page 22